Accord experiences 5-year fix spike

Accord Mortgages has seen a spike in people taking out 5-year fixed rates.

From the start of last year to the end 5-year fixed rate applications from remortgagors increased by 30%.

David Robinson, national intermediary sales manager at Accord, said: “Due to the competitiveness of 5-year deals at the moment borrowers feel they will save more money in the long run by plumping for a longer-term fix.

“For instance, there is currently a 0.15% rate difference between a market average 2-year fix at both 60% and 65% loan-to-value at a rate of 1.73% and Accord’s 1.88% five-year remortgage deal at the same LTV [Moneyfacts data].

“The changing economic, social and political landscape over the past year may have made borrowers nervous.

“However, our figures show that brokers have navigated clients through the challenges by advising that securing a competitive rate for longer is best for them.”